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TMI BlogSecurities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000Guidelines for offering securities in public issues through the Stock Exchange mechanism.X X X X Extracts X X X X X X X X Extracts X X X X ..... had considered the proposal of offering securities in public issues through the stock exchange mechanism and after considering the advantages of the system, approved the proposal. Accordingly, the Guidelines for offering securities in public issues on - line through the stock exchange mechanism have been framed. The Guidelines are contained in a new chapter XI A (inserted by this circular) after the existing Chapter XI of the SEBI (Disclosure and Investor Protection) Guidelines, 2000. Chapter XI A shall be applicable in respect of fixed-price issues as well as for the fixed price portion of book-built issues. The company making public issues of securities shall now have the option to issue securities through the on-line system of the Sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with the company. 11A.3-2 For the purposes of this Chapter, the brokers, so appointed accepting applications and application monies, shall be considered as 'collection centres'. 11A.3-3 The broker/s so appointed, shall collect the money from his/their client for every order placed by him/them and in case the client fails to pay for shares allocated as per the Guidelines, the broker shall pay such amount. 11A.3-4 The company/lead manager shall ensure that the brokers having terminals are appointed in compliance with the requirement of mandatory collection centres, as specified in clause 5.9 of Chapter V of the Guidelines. 11A.3-5 The company/lead manager shall ensure that the brokers so appointed are financially capable of honouring th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any is situated. 11A.7-2 The advertisement shall contain the salient features of the offer document as specified in Form 2A of the Companies (Central Government's) General Rules and Forms, 1956. The advertisement in addition to other required information, shall also contain the following: i. the date of opening and closing of the issue; ii. the method and process of application and allotment; iii. the names, addresses and the telephone numbers of the stock brokers and centres for accepting the applications. 11A.7-3 During the period the issue is open to the public for subscription, the applicants may a. approach the brokers of the stock exchange/s through which the securities are offered under on-line system, to place an order for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imary market issues and the amount collected by the broker from his clients as margin money shall be deposited in this account. 11A.7-10 The broker shall, at the end of each day while the issue is open for subscription, download/forward the order data to the Registrar to the Issue on a daily basis. This data shall consist of only valid orders (excluding those that are cancelled). On the date of closure of the issue, the final status of orders received shall be sent to the Registrar to the issue/company. 11A.7-11 On the closure of the issue, the Regional Stock Exchange, alongwith the Lead Merchant Banker and Registrars to the Issue shall ensure that the basis of allocation is finalised in fair and proper manner on the lines of the norms wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money to the exchange. The brokers shall also give soft copy of this data to the exchange. 11A.7-16 On the pay-in day, the broker shall deposit the amount collected from the clients in the separate bank account opened for primary issues with the clearing house/bank. The clearing house shall debit the primary issue account of each broker and credit the amount so collected from each broker to the "Issue Account" 11A.7-17 In the event of the successful applicants failing to pay the application money, the broker through whom such client placed orders, shall bring in the funds to the extent of the client's default. If the broker does not bring in the funds, he shall be declared as a defaulter by the exchange and action as prescribed under the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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